Australian Conservative Party to introduce legislation to strike down controversial bank levy

UPDATED: The Australian Conservatives Party will move to strike down the State Government’s controversial bank tax, but needs greater support if its push is to pass Parliament.

THE Australian Conservatives Party will move to strike down the State Government’s controversial bank tax, but needs greater support if its push is to pass Parliament.

Australian Conservatives MP Dennis Hood told reporters on Sunday that he would introduce an amendment when MPs return to Parliament in just over a week’s time.

It would remove the bank tax measure from the Government’s Budget Bill, but enable the rest of the Budget measures to pass.

Mr Hood labelled the tax, to be levied on the big four banks and Macquarie Group, as a “lazy” and “unnecessary” policy which would stifle investment in SA.

The tax is forecast to net the State Government an extra $370 million over four years.

Mr Hood urged the Liberal and Nick Xenophon Team parties to support scrapping the tax measure — which is modelled on a federal government policy — from the State Budget.

“It will affect everyone. It won’t just be absorbed by the banks” Mr Hood said.

“It will affect anyone that has superannuation because bank shares will be affected by this tax and bank shares are prominent in superannuation funds.”

Mr Hood’s amendment needs the support of the Opposition if it is to pass.

The Australian Conservative Party’s Dennis Hood. Photo: Naomi Jellicoe

Opposition Leader Steven Marshall opposes the tax but has so far insisted that his party will allow the entire Budget through because it is political convention not to obstruct the supply of public money.

This is despite having opposed a Budget measure — a planned car park tax — following the 2014 election, which was eventually removed from that year’s Budget Bill.

Mr Marshall argued that situation was different because the public had rejected the proposed car park tax at the 2014 election by delivering a low primary vote to Labor and a hung Parliament.

“We had a mandate from the people of South Australia (to reject the car park tax),” he said.

“This (bank tax) hasn’t gone to the people of South Australia.”

However, he may have left himself the option to change tack again, saying there was “nothing that’s occurred to this point that would make us change that convention (of supporting the Budget)” but an “exceptional set of circumstances” could prompt the party to “move away from that position”.

Mr Marshall will give his Budget in reply speech next week.

If the Parliament remained deadlocked on the issue political analysts say there is a very slim chance that it could create a trigger for an earlier state election.

Asked if that was a possibility, Treasurer Tom Koutsantonis emphatically responded that the Government was “not contemplating any early elections”.

“Let me be very clear about this, we do not want an early election. The election will be on the third Saturday in March, 2018. Nothing is changing that,” he said.

Mr Koutsantonis expected his Budget to pass in full and for the bank tax to be collected by Revenue SA.

“The Australian Conservatives are only two votes (in Parliament). From what I can tell it will be overwhelmingly passed in the Upper House,” he said.

“The (the Australian Conservatives) used to be called Family First. They’ve gone from putting their family first to now putting the banks first.”

Mr Koutsantonis rejected concerns that taxing the banks would lead to higher costs for SA customers.

“This is a tax on five businesses so we can support thousands of businesses across South Australia,” he said.

“Some banks are prepared to accept this, others aren’t. You’ll have to wait and see.”

Commenting on an advertising campaign launched in the wake of the Budget by the Australian Bankers’ Association, Mr Koutsantonis said: “Now you know how your bank fees are being spent ... on advertising campaigns to save the super salaries that these chief executives get”.

“We’re not goading the banks or daring the banks. I’d prefer that no one challenge the legislation but they’re entitled to,” he said.